State puts brakes on pricey farmland deal

“Basically, this is a well-intentioned effort to pull together resources from two or three groups to do land conservation in places where the market value prevents it.” – Agriculture Secretary Ed Kee.
(Photo: The News Journal/ROBERT CRAIG)

The purchase would have involved an unprecedented pooling of funds from the foundation, the state Open Space Council and New Castle County.

The understanding approved by the foundation and the county called for joint county and state purchase of a 132-acre tract owned by state Farm Bureau President Gary Warren and the 110-acre Jaymes Lester Farm. Both are adjacent to Thousand Acre Marsh, the area's largest freshwater wetland.

That purchase and others would pave the way to a new state approach of paying near-market value for farmland considered important for preservation, but unavailable at traditional prices for farm preservation rights.

Dave Carter, conservation chairman for Delaware Audubon, warned that the new approach could deplete budgets for more traditional and successful preservation efforts that often pay far below market value to keep the land in farming or as undeveloped space.

He also questioned behind-the-scenes talks that led up to the $6.6 million proposal, amounting to $25,000 to $30,000 per acre – far in excess of the average $900 to $1,500 per acre paid in recent Agland Preservation development rights purchases.

"It has some potential, if not implemented carefully, of completely undermining the integrity of the open space and agricultural land preservation process," Carter said. "I think the program may have some merit. It may have some potential. But I think you need to move very cautiously."

New Castle County agreed to contribute $3 million for the purchase, while the foundation would have chipped in $1.6 million. The $2 million remainder was to come from the council through DNREC.

Lorraine Fleming, a citizen member of the Open Space Council and a longtime Delaware Nature Society member, said officials need to assess needs and identify farm property that would qualify for higher purchase prices before moving ahead. More specific details on funding sources also are needed.

"I'm uncomfortable with that degree of vagueness," Fleming said.

The group later approved a general statement of support for the joint funding approach, with some saying that more information is needed on the specifics of the deals for the two farms off Port Penn Road near Augustine Wildlife Area.

"Basically, this is a well-intentioned effort to pull together resources from two or three groups to do land conservation in places where the market value prevents it," said Agriculture Secretary Ed Kee.

Kate Hackett, executive director of the conservation group Delaware Wild Lands, said that action on the first farm deals appeared to be "premature."

"There's a tremendous amount of public interest in conservation," Hackett said. "Letting the public know about this opportunity, I think, will let us achieve greater results."

Gov. Jack Markell proposed only $2 million each for open space and farmland preservation funds this year, although the open space program currently has a $5.3 million balance available from past appropriations.

Warren said Wednesday afternoon that his farm is part of an active development prospect under a Toll Brothers plan that dates back to 2003.

Warren and Toll Brothers, however, sued New Castle County over the availability of county sewer line access in 2007, leading to an eventual settlement that gives Lester and Toll Brothers until June of 2015 to submit a development plan for the 132-acre parcel.

"It's a matter of, if we don't preserve it, yes it will be developed. There's no doubt about that," Lester said, noting that New Castle County agreed to an extension of the development plan deadline in part to allow time for a conservation deal. "The right thing to do is preserve this swath of land. They can do that or they can spend $10 million for a new school after we put the houses there."

Warren said that the $3.3 million value set for his property followed multiple appraisals of the lost development right values once preservation easements are sold to the state.